Practice Cover Locum Insurance
Practice Cover is a specialist provider offering insurance for individual doctors and dentists and practices and has introduced new benefits to its Locum Insurance Plan (which is underwritten by Alpha Underwriting at Lloyd’s).
Premiums have not risen (indeed have been stable for over six years now) as a result of the improvements, which are:
Revalidation. This applies to health professionals who have to undergo further training to meet revalidation criteria. In this case, payment is made to the practice to meet the associated costs. The benefit is subject to a maximum 20 days' payment and there is a five day excess period.
Fit note. Where a doctor returns to work after illness on a reduced hours basis, there may be increased costs for the practice as it tries to cover the 'missing' hours. This benefit pays for up to 35 days to help the practice meet these additional costs.
Compassionate leave. This existing benefit has been extended to cover the accidental death of a family member.
The plan can be annually renewable or set up on a continuity of cover basis. The latter is where terms and premiums cannot be changed by the underwriter as long as the policy is renewed at each renewal.
There is a choice of three cover levels available. There is no underwriting at renewal and premiums do not increase if a claim is made (although on annually renewable plans, the underwriters may limit cover in future). A no claims discount applies for non-claimers. Customers do not need to provide locum receipts in order to claim.
A weekly sum insured of £1,000 with a four week deferred period and a maximum benefit period of 52 weeks costs from £411.13 a year for a Level 1 annually renewable cover plan up to £810.51 a year for a Level 3 continuity of cover plan.
Benefits must be between £200 and £3,000 a week. The deferred period can be from 2-26 weeks. Group discounts apply to groups of three or more. Premiums are not based on age, sex or health and do not go up with age but are subject to Insurance Premium Tax (at 9.5% but due to rise to 10% later this year). Premiums will usually be tax relievable and can be paid in monthly instalments, but that is subject to a credit charge.
Comment: Practice Cover has made a good name for itself as a specialist provider of insurance for individual medics and practices. This plan only provides up to a year of benefits, but that suits GPs whose liability to their practice is limited to 12 months anyway. For those medics who need a longer benefit period therefore this may not be the plan for them.
One other downside is that, being a general insurance policy, premiums are subject to IPT, which is due to rise to 10% later this year.
On the plus side however, GPs can choose whether to fix premiums which, in any event, are not dependant on their age.
This is a specialist market so choosing a provider that knows it well can make sense and, now with an established track record, the improvements Practice Cover has introduced should further increase the appeal of this plan. Our rating applies to those for whom a 12 month maximum benefit period is ideal. If you need longer, the rating would be lower.
Plus points: Specialist cover from a specialist provider; 12 months max benefit should suit most GPs; Premiums should be tax relievable; Benefits now improved; Practice Cover has kept its rates stable for six years now .
Not so plus points: Maximum 12 months’ benefits will not be ideal for all potential customers; Premiums subject to IPT (which will go up again later this year).
Website: www.practicecover.co.uk.
Rating (max 10): Innovation: 7. Overall: 8. Gold
Tags: IP; Practice Cover